Net sales for the period were $2.5 billion, up 3% versus prior year.
Volume and currency each declined approximately 1% while acquisitions
added 4%. Price was flat. The organic initiatives have started to gain
traction and contributed modestly to 1Q revenue.

The gross margin rate for the quarter was 36.6%. Excluding charges,
the gross margin rate was 37.2%, down 50 basis points versus prior
year, ascost synergies were more than offset by lower volumes
and CSS margin contraction.

SG&A expenses were 26.9% of sales. Excluding charges, SG&A expenses
were 25.6% of sales, compared to a 1Q’12 level of 25.1%, primarily due
to the investments in the organic growth initiatives.

Operating margin was 9.7% of sales. Excluding charges, operating
margin was 11.6% of sales, down 90 basis points from the 1Q’12
operating margin of 12.5%.

The tax rate was 9.7%. Excluding charges, the tax rate was 17.2%,
lower than anticipated due to the acceleration of certain tax credits
and the favorable impact of the enactment of U.S. tax legislation in
January which had retroactive effect on the tax rate.The full
year tax rate is now forecasted to be at the low end of the previous
range of 23-24%.

Working capital turns for the quarter were 6.0, essentially flat to
1Q’12. For the quarter, free cash flow was an outflow of $227 million.
Excluding charges and payments, it was an outflow of $132 million.
While outflows historically occur during the first quarter, the timing
of revenue within the first quarter of 2013 resulted in temporary
additional working capital pressures.

Stanley Black & Decker’s Chairman and CEO, John F. Lundgren, commented,
“Despite a far from robust external environment, we remain confident in
our ability to achieve our full year 2013 EPS, sales and free cash flow
targets while continuing to invest in organic revenue growth.
Profitability in our CDIY business continues to improve, and we expect
to realize increased sales in this segment going forward as a result of
new product introductions and customer listings as well as our
increasing presence in emerging markets.

“As previously announced, the Infastech acquisition closed during the
first quarter and the integration is progressing smoothly. This
high-growth business with strong margins and a compelling presence in
the emerging markets is an excellent fit for our engineered fastening
business and an important addition to our Industrial segment.

“We are pleased that the new organic revenue growth initiatives we
announced last year illustrated promising early signs that our efforts
are gaining traction. These initiatives, occurring across all of our
business lines and geographies, are important components of our
mid-decade goals, and we remain focused on capitalizing on our excellent
market position to increase shareholder value.”

In the CDIY segment, net sales increased 2% versus 1Q’12 due to a 3%
increase from acquisitions and a 1% decline from currency. Both volume
and price were relatively flat. The flat organic growth can be
attributed to a later start to the North America outdoor season due to
a much colder than average March in many parts of the region as well
as softer markets in Latin America, which offset growth in many of the
other emerging markets such as China, Southeast Asia, Russia & Turkey.
Management believes that the headwinds encountered in 1Q will lessen
in 2Q and that the segment remains solidly on track for mid-single
digit organic growth for the full year. Excluding charges, overall
segment profit was 14.5%, up 160 basis points versus prior year due to
cost synergies, product mix and the timing of certain promotions.

Net sales in Security increased 1% versus 1Q’12 due to 1% from
acquisitions, 1% from currency and 1% from price, which were partially
offset by a 2% decline in volume. The CSS North America business grew
modestly on an organic basis due to continued steady backlog
conversion. CSS Europe declined 5% organically primarily due to
pressure within the Nordic region.

Mechanical Access
organic sales were up 5% with solid growth in both the commercial
mechanical lock business and the automatic door business, which is
reflective of improving market conditions, initial success with the
distributor business model shift and increased remodeling in the
retail channel, respectively.

The segment profit rate,
excluding charges, was 10.3%, 270 basis points lower than the 1Q’12
rate. The year over year decline can be attributed to larger but less
profitable installations in CSS North America, pressure from volume
headwinds in Europe and temporary negative rate pressure in the
commercial lock business due to the business model shift.

Net sales in the Industrial segment rose 5%. Unit volumes fell
approximately 1%, currency was down 1% and acquisitions added 7%.
Organic sales for the Industrial and Automotive Repair (IAR) platform
fell 4% as volume declines in Europe driven by industrial customer
destocking more than offset strong MAC Tool performance and successes
with the CribMaster smart storage products. Engineered Fastening was
relatively flat on an organic basis, outpacing global light vehicle
production, which retracted 4%. Fastening organic revenues in Europe
rose 2% as continued growth in automotive due to increased platform
penetration more than offset weakness in automotive production rates
as well as industrial fasteners. The integration of Infastech, which
closed in late February, is progressing well and is still expected to
yield $0.20 of accretion on a full year basis.

Overall
Industrial segment profit excluding charges fell versus the record
1Q’12 rate of 18.9% to 14.1% due to investments in the organic growth
initiatives and lower volumes in IAR Europe.

President and Chief Operating Officer, James M. Loree, commented, “Even
with a colder than normal March in many parts of North America and
softer markets in parts of Latin America impacting CDIY in the first
quarter, we remain confident in our ability to grow our CDIY business
organically in a mid-single digit range for the remainder of the year.
In Security, we are pleased to announce that the cost synergies related
to the Niscayah acquisition will exceed their original 2013 target of
$35 million by $15 million, bringing the total for this year to $50
million. This incremental $15 million will neutralize the impact of the
volume and rate pressures we are encountering within Security Europe. We
are currently evaluating the potential for further upside to the total
cost synergy program estimate in 2014.

“During the quarter, we saw compelling signs of early progress with our
organic growth initiatives. These initiatives are largely driven by the
acquisitions that we have made in the past 2-3 years as we continue to
expand upon one of our core competencies of building world-class
businesses that will yield the higher growth and higher profitability
targets inherent in our mid-decade vision and key to our mission of
maximizing shareholder value. Some examples of early wins are the
expansion of our hand and power tool distributor network in China which
helped drive 13% organic growth within our tool business in the country
as well as some key vending contracts for our CribMaster product, which
resulted in 5% growth for our advanced industrial storage solutions
initiative in North America.”

Reiteration Of 2013 Outlook

Donald Allan Jr., Senior Vice President and CFO commented, “We are
committed to restoring the profitability of our security business to and
beyond historical levels and our ability to realize more cost synergies
within the Niscayah business in Europe is an important step in doing so.
We remain focused on driving organic growth and efficiencies across the
entire company, maximizing synergies across our lines of business, and
allocating capital in ways that provide excellent returns for our
shareholders, including the significant share repurchases completed with
the majority of the proceeds from the HHI divestiture. Executing upon
these items and achieving our 2013 guidance are important steps in
forging a clear path to our long-term financial goals and mid-decade
vision.”

The Company continues to expect full year 2013 EPS to be in the range of
$5.40 - $5.65 and free cash flow of $1 billion, excluding charges.

The following assumptions remain unchanged from the guidance provided in
January:

The organic growth initiatives are expected to yield 1 point of
revenue growth but will be approximately $0.15 dilutive to EPS

The Company expects to realize the final $50 million in cost synergies
related to the Black & Decker merger, which should drive ~$0.23 of EPS.

The Niscayah cost synergies will approximate $50 million for 2013, up
$15 million from the original $35 million estimate for this year.
However, the incremental $15 million will be offsetting rate pressure
within the CSS Europe business and hence not additional to the
previously communicated $0.17 of accretion for 2013.

The Infastech acquisition is expected to add $0.20 of EPS accretion.

Cost containment actions taken in 2012 will have a positive carryover
impact of $30 million, or ~$0.15 of EPS.

The share repurchases enacted with $850 million of the HHI proceeds
should yield an incremental $0.37 of EPS. An accelerated share
repurchase (ASR) was executed in December 2012 which resulted in the
retirement of 9.3 million shares representing 80% notional value
equivalent in shares. The final delivery of shares related to the ASR
is expected to be completed in 2Q’13.

The combination of any currency impact (at current rates),
price/inflation, the negative carryover business mix impact and the
small acquisitions completed in 2012 will have a neutral impact.

Free
cash flow, excluding one-time charges and payments, is expected to be
approximately $1.0 billion.

The following changes to the original guidance net to a neutral impact:

The year-over-year changes in interest/other-net will approximate a
$0.05 headwind, down from $0.10. Interest expense is still expected to
be $145 million, $10 million higher than 2012, however, other-net will
be flat to 2012 ($~250 million), due to less amortization from
Infastech as a result of the late February close.

The tax rate will be at the low end of the previously anticipated
range of 23-24%, creating a $0.20 - $0.25 headwind when compared to
the 2012 rate of 19.8%. (Versus an original VPY headwind range of
$0.20 - $0.30)

The average share count for 2013 will be 158.5 million shares, up from
the original estimate of 155.9 million shares.

Due to the timing of investments in the organic growth initiatives and
management’s belief that volume growth will improve across all of the
businesses as the year progresses, 1H’13 EPS will approximate 40% of FY
EPS, while 2H’12 will approximate 60% of FY EPS, slightly different from
historic trends where the second half approximates 56 – 58% of FY EPS.
Note: The majority of the annual $0.15 EPS dilution from the organic
growth initiatives occurs in 1H’13 vs. the neutral impact in 2H’13.

Including all charges, the Company expects GAAP EPS to approximate $4.46
to $4.71 in 2013. For the full year of 2013 the Company estimates the
one-time pre-tax charges to be approximately $200 million.

Merger And Acquisition (M&A)One-Time
Charges and Credits

Total one-time charges in 1Q’13 related to M&A were $106.1 million.
Gross margin includes $13.3 million of these one-time charges, primarily
related to amortization of inventory step-up adjustments for the
Infastech acquisition, and SG&A includes $34.3 million in one-time
charges, primarily for integration-related administration costs and
consulting fees, as well as employee-related matters. $22.1 million of
these costs that impact the Company’s operating margin are included in
segment results, with the remainder in corporate overhead. Lastly,
one-time charges of $15.6 million are included in Other, net and $42.9
million are included in restructuring charges, the majority of which
represent Niscayah-related restructuring charges and cost containment
actions associated with the severance of employees.

The company will host a conference call with investors today, Thursday,
April 25th, at 8:00am ET. A slide presentation which will accompany the
call will be available at www.stanleyblackanddecker.com
and will remain available after the call.

You can also access the slides via the Stanley Black & Decker Investor
Relations iPad & iPhone app from the Apple App Store by searching for
“SWK Investor Relations”.

The call will be accessible by telephone at (877) 261-8990, from outside
the U.S. at +1 (847) 619-6441, and via the Internet at www.stanleyblackanddecker.com.
To listen, please register on the web site at least fifteen minutes
prior to the call and download and install any necessary audio software.
Please use the conference identification number 3460-8030. A replay will
also be available two hours after the call and can be accessed at (888)
843-7419 or +1 (630) 652-3042 using the passcode 3460-8030#. The replay
will also be available as a podcast within 24 hours and can be accessed
on our website and via iTunes.

These results reflect the Company’s continuing operations. The Company
sold its Hardware & Home Improvement business (HHI), including the
residential portion of Tong Lung in December of 2012. The sale of this
business occurred in a First and Second Closing. The First closing,
which excluded the residential portion of Tong Lung, occurred on
December 17, 2012. The Second closing in which the residential portion
of Tong Lung was sold occurred on April 8, 2013. The operating results
of the residential portion of Tong Lung have been reported as
discontinued operations for Q1 2013 while the operating results of HHI
have been reported as discontinued operations for Q1 2012. Total sales
reported as discontinued operations relating to these businesses were
$22.3 million and $226.8 million for Q1 2013 and Q1 2012, respectively.

Organic sales growth is defined as total sales growth less the sales of
companies acquired in the past twelve months and any foreign currency
impacts. Operating margin is defined as sales less cost of sales and
selling, general and administrative expenses. Management uses operating
margin and its percentage of net sales as key measures to assess the
performance of the Company as a whole, as well as the related
measures at the segment level. Free cash flow is defined as cash flow
from operations less capital and software expenditures. Management
considers free cash flow an important indicator of its liquidity, as
well as its ability to fund future growth and to provide a return to the
shareowners. Free cash flow does not include deductions for mandatory
debt service, other borrowing activity, discretionary dividends on the
Company’s common stock and business acquisitions, among other items. The
normalized statement of operations, cash flows and business segment
information, as reconciled to GAAP on pages 14-16 for 2013 and 2012, is
considered relevant to aid analysis of the Company’s operating
performance, earnings results and cash flows aside from the material
impact of the one-time charges and payments associated with the Black &
Decker merger, the Niscayah and Infastech acquisitions and other smaller
acquisitions of the Company. Normalized cash flow and free cash flow, as
reconciled from the associated GAAP measures on page 15 for 2013 and
2012 are considered meaningful pro forma metrics to aid the
understanding of the company’s cash flow performance aside from the
material impact of the M&A-related payments and charges.

CAUTIONARY STATEMENTS

Under the Private Securities Litigation Reform Act of 1995

Statements in this press release that are not historical, including but
not limited to those regarding the Company’s ability to: (i) achieve
full year 2013 diluted EPS of $5.40-5.65, excluding M&A charges and GAAP
EPS of $4.46 – $4.71; (ii) generate approximately $1.0 billion in free
cash flow for 2013, excluding charges and payments; and (iii) achieve
its mid-decade goals of $15 billion in sales, operating margins greater
than 15%, greater than 20% of revenues generated from emerging markets,
return on capital/return on investment of 15%, and 10 working capital
turns (collectively, the “Results”); are “forward looking statements”
and subject to risk and uncertainty.

The Company’s ability to deliver the Results as described above is based
on current expectations and involves inherent risks and uncertainties,
including factors listed below and other factors that could delay,
divert, or change any of them, and could cause actual outcomes and
results to differ materially from current expectations. In addition to
the risks, uncertainties and other factors discussed in this press
release, the risks, uncertainties and other factors that could cause or
contribute to actual results differing materially from those expressed
or implied in the forward looking statements include, without
limitation, those set forth under Item 1A Risk Factors of the Company’s
Annual Report on Form 10-K and any material changes thereto set forth in
any subsequent Quarterly Reports on Form 10-Q, or those contained in the
Company’s other filings with the Securities and Exchange Commission, and
those set forth below.

The Company’s ability to deliver the Results is dependent, or based,
upon: (i) the Company’s ability to achieve $50 million of synergies in
2013 from Black & Decker merger and another $50 million from the
acquisition of Niscayah; (ii) the Company’s ability to execute its
integration plans and achieve synergies from the Infastech acquisition
sufficient to generate $.20 of EPS accretion in 2013; (iii) the
Company’s ability to generate organic net sales increases of 2-3% in
2013 and 4-6% by 2015; (iv) the Company’s ability to identify and
execute upon acquisitions and sales opportunities to double its CDIY,
IAR and Security businesses in the emerging markets by 2015 while
minimizing associated costs; (v) the Company’s ability to complete the
share repurchases scheduled for execution by the end of the second
quarter and achieve an average share count for the year of 158.5 million
shares; (vi) the Company’s ability to achieve a tax rate at the lower
end of 23-24% in 2013; (vii) the Company’s ability to limit interest
expense to approximate $145 million and other-net to approximate $250
million in 2013; (viii) the Company’s ability to minimize tax
liabilities associated with the HHI divestiture; (ix) successful
integration of acquisitions completed in 2012 and any acquisitions
completed in 2013, as well as integration of existing businesses; (x)
the continued acceptance of technologies used in the Company’s products
and services; (xi) the Company’s ability to manage existing Sonitrol
franchisee and Mac Tools relationships; (xii) the Company’s ability to
minimize costs associated with any sale or discontinuance of a business
or product line, including any severance, restructuring, legal or other
costs; (xiii) the proceeds realized with respect to any business or
product line disposals; (xiv) the extent of any asset impairments with
respect to any businesses or product lines that are sold or
discontinued; (xv) the success of the Company’s efforts to manage
freight costs, steel and other commodity costs as well as capital
expenditures; (xvi) the Company’s ability to sustain or increase prices
in order to, among other things, offset or mitigate the impact of steel,
freight, energy, non-ferrous commodity and other commodity costs and any
inflation increases; (xvii) the Company’s ability to generate free cash
flow and maintain a strong debt to capital ratio; (xviii) the Company’s
ability to identify and effectively execute productivity improvements
and cost reductions, while minimizing any associated restructuring
charges; (xix) the Company’s ability to obtain favorable settlement of
routine tax audits; (xx) the ability of the Company to generate earnings
sufficient to realize future income tax benefits during periods when
temporary differences become deductible; (xxi) the continued ability of
the Company to access credit markets under satisfactory terms; (xxii)
the Company’s ability to negotiate satisfactory payment terms under
which the Company buys and sells goods, services, materials and
products; and (xxiii) the Company’s ability to successfully develop,
market and achieve sales from new products and services.

The Company’s ability to deliver the Results is also dependent upon: (i)
the success of the Company’s marketing and sales efforts, including the
ability to develop and market new and innovative products in both
existing and new markets; (ii) the ability of the Company to maintain or
improve production rates in the Company’s manufacturing facilities,
respond to significant changes in product demand and fulfill demand for
new and existing products; (iii) the Company’s ability to continue
improvements in working capital through effective management of accounts
receivable and inventory levels; (iv) the ability to continue
successfully managing and defending claims and litigation; (v) the
success of the Company’s efforts to mitigate any cost increases
generated by, for example, increases in the cost of energy or
significant Chinese Renminbi or other currency appreciation; (vi) the
geographic distribution of the Company’s earnings; (vii) the commitment
to and success of the Stanley Fulfillment System; (viii) successful
implementation with expected results of cost reduction programs; (ix)
successful completion of share repurchases at anticipated costs and (x)
the Company’s ability to mitigate any disruptions in its supply chain
that may occur in the event the situation in North Korea affects
shipping or other activities in the region.

The Company’s ability to achieve the Results will also be affected by
external factors. These external factors include: challenging global
macroeconomic environment; the continued economic growth of emerging
markets, particularly Latin America; pricing pressure and other changes
within competitive markets; the continued consolidation of customers
particularly in consumer channels; inventory management pressures on the
Company’s customers; the impact the tightened credit markets may have on
the Company or its customers or suppliers; the extent to which the
Company has to write off accounts receivable or assets or experiences
supply chain disruptions in connection with bankruptcy filings by
customers or suppliers; increasing competition; changes in laws,
regulations and policies that affect the Company, including, but not
limited to trade, monetary, tax and fiscal policies and laws; the timing
and extent of any inflation or deflation; currency exchange
fluctuations; the impact of dollar/foreign currency exchange and
interest rates on the competitiveness of products and the Company’s debt
program; the strength of the U.S. and European economies; the extent to
which world-wide markets associated with homebuilding and remodeling
stabilize and rebound; the impact of events that cause or may cause
disruption in the Company’s manufacturing, distribution and sales
networks such as war, terrorist activities, and political unrest; and
recessionary or expansive trends in the economies of the world in which
the Company operates. The Company undertakes no obligation to publicly
update or revise any forward-looking statements to reflect events or
circumstances that may arise after the date hereof.

STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, Millions of Dollars Except Per Share Amounts)

FIRST QUARTER

2013

2012

NET SALES

$

2,487.2

$

2,426.1

COSTS AND EXPENSES

Cost of sales

1,576.3

1,514.1

Gross margin

910.9

912.0

% of Net Sales

36.6

%

37.6

%

Selling, general and administrative

669.9

637.3

% of Net sales

26.9

%

26.3

%

Operating margin

241.0

274.7

% of Net sales

9.7

%

11.3

%

Other - net

71.0

67.9

Restructuring charges

42.9

40.0

Income from operations

127.1

166.8

Interest - net

36.7

31.4

EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

90.4

135.4

Income taxes on continuing operations

8.8

29.8

NET EARNINGS FROM CONTINUING OPERATIONS

81.6

105.6

Less: net loss attributable to non-controlling interests

(0.4

)

(0.7

)

NET EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO
COMMON SHAREOWNERS

82.0

106.3

NET (LOSS) EARNINGS FROM DISCONTINUED OPERATIONS

(0.9

)

15.5

NET EARNINGS ATTRIBUTABLE TO COMMON SHAREOWNERS

$

81.1

$

121.8

BASIC EARNINGS (LOSS) PER SHARE OF COMMON STOCK

Continuing operations

$

0.53

$

0.65

Discontinued operations

(0.01

)

0.09

Total basic earnings per share of common stock

$

0.52

$

0.74

DILUTED EARNINGS (LOSS) PER SHARE OF COMMON STOCK

Continuing operations

$

0.52

$

0.63

Discontinued operations

(0.01

)

0.09

Total diluted earnings per share of common stock

$

0.51

$

0.72

DIVIDENDS PER SHARE

$

0.49

$

0.41

AVERAGE SHARES OUTSTANDING (in thousands)

Basic

155,552

164,530

Diluted

158,994

168,948

STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, Millions of Dollars)

March 30,

December 29,

2013

2012

ASSETS

Cash and cash equivalents

$

557.5

$

716.0

Accounts and notes receivable, net

1,782.7

1,537.6

Inventories, net

1,539.7

1,316.0

Assets held for sale

83.9

135.2

Other current assets

462.1

394.1

Total current assets

4,425.9

4,098.9

Property, plant and equipment, net

1,354.6

1,333.6

Goodwill and other intangibles, net

10,679.4

9,955.5

Other assets

437.6

456.0

Total assets

$

16,897.5

$

15,844.0

LIABILITIES AND SHAREOWNERS' EQUITY

Short-term borrowings

$

1,342.5

$

11.5

Accounts payable

1,514.8

1,349.7

Accrued expenses

1,267.6

1,681.5

Liabilities held for sale

7.7

30.9

Total current liabilities

4,132.6

3,073.6

Long-term debt

3,494.1

3,526.5

Other long-term liabilities

2,611.7

2,516.8

Stanley Black & Decker, Inc. shareowners' equity

6,614.7

6,667.1

Non-controlling interests' equity

44.4

60.0

Total liabilities and equity

$

16,897.5

$

15,844.0

STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES

SUMMARY OF CASH FLOW ACTIVITY

(Unaudited, Millions of Dollars)

FIRST QUARTER

2013

2012

OPERATING ACTIVITIES

Net earnings from continuing operations

$

81.6

$

105.6

Net (loss) earnings from discontinued operations

(0.9

)

15.5

Depreciation and amortization

105.8

115.8

Changes in working capital1

(195.0

)

(152.2

)

Other

(139.0

)

(117.0

)

Net cash used in operating activities

(147.5

)

(32.3

)

INVESTING AND FINANCING ACTIVITIES

Capital and software expenditures

(79.5

)

(61.5

)

Business acquisitions and asset disposals

(852.9

)

(112.8

)

Proceeds from issuances of common stock

83.2

64.6

Net short-term borrowings

1,330.5

196.8

Cash dividends on common stock

(79.1

)

(69.9

)

Purchases of common stock for treasury

(21.1

)

(10.9

)

Payment on forward stock purchase contract

(350.0

)

-

Other

(42.1

)

2.7

Net cash (used in) provided by investing and financing activities

(11.0

)

9.0

Decrease in Cash and Cash Equivalents

(158.5

)

(23.3

)

Cash and Cash Equivalents, Beginning of Period

716.0

906.9

Cash and Cash Equivalents, End of Period

$

557.5

$

883.6

1

The change in working capital is comprised of accounts receivable,
inventory, accounts payable and deferred revenue.

The normalized 2013 and 2012 information, as reconciled to GAAP
above, is considered relevant to aid analysis of the Company’s
margin and earnings results aside from the material impact of the
merger & acquisition-related charges.

Free cash flow is defined as cash flow from operations less capital
and software expenditures. Management considers free cash flow an
important measure of its liquidity, as well as its ability to fund
future growth and to provide a return to the shareowners. Free cash
flow does not include deductions for mandatory debt service, other
borrowing activity, discretionary dividends on the Company’s common
stock and business acquisitions, among other items. Normalized cash
flow and free cash flow, as reconciled above, are considered
meaningful pro forma metrics to aid the understanding of the
company's cash flow performance aside from the material impact of
merger and acquisition-related activities.

The normalized 2013 and 2012 business segment information, as
reconciled to GAAP above, is considered relevant to aid analysis of
the company’s segment profit results aside from the material impact
of the merger and acquisition-related charges.